cenovus fccl ltd. christina lake in-situ progress report

Cenovus Energy Inc.Christina Lake In-situ Progress Report

Scheme 85912019 update

September 30, 2020

Oil & gas and financial information

Oil & gas informationThe estimates of reserves were prepared effective December 31, 2019. All estimates of reserves wereprepared by independent qualified reserves evaluators, based on definitions contained in the Canadian Oil andGas Evaluation Handbook and in accordance with National Instrument 51-101 Standards of Disclosure for Oiland Gas Activities. Additional information with respect to pricing and additional reserves and other oil and gasinformation, including the material risks and uncertainties associated with reserves estimates, is contained inour AIF and Form 40-F for the year ended December 31, 2019 available on SEDAR at www.sedar.com, EDGARat www.sec.gov and on our website at cenovus.com.

Certain natural gas volumes have been converted to barrels of oil equivalent (BOE) on the basis of one barrel(bbl) to six thousand cubic feet (Mcf). BOE may be misleading, particularly if used in isolation. A conversionratio of one bbl to six Mcf is based on an energy equivalency conversion method primarily applicable at theburner tip and does not represent value equivalency at the well head.

TM denotes a trademark of Cenovus Energy Inc.© 2020 Cenovus Energy Inc.

2© 2020 Cenovus Energy Inc. September 30, 2020

AdvisoryThis presentation contains information in compliance with:AER Directive 054 - Performance Presentations, Auditing, and Surveillance of In Situ Oil Sands Schemes This document contains forward-looking information prepared and submitted pursuant to Alberta regulatory requirements and is not intended to be relied upon for the purpose of making investment decisions, including without limitation, to purchase, hold or sell any securities of Cenovus Energy Inc.

3© 2020 Cenovus Energy Inc. September 30, 2020

Subsection 4.1 1Introduction

5

Cenovus at a glance

Narrows Lake

Foster Creek

Marten Hills

Christina Lake

Telephone Lake

Elmworth-Wapiti

Kaybob-Edson

Clearwater

Bruderheim

2020F production

Oil SandsDeep Basin

375 Mbbls/d84 MBOE/d

2019 proved & probable reserves

6.9 BBOE

Reserve life index 42 years

Refining capacity 248 Mbbls/d net

TSX, NYSE | CVE

Note: Values are approximate. Forecasted production based on the midpoint of April 1, 2020 guidance.2019 proved & probable reserves as at December 31, 2019. Reserve life index based on 2019 provedplus probable reserves and 2019 production before royalties, which was impacted by mandatorycurtailment. Refining capacity represents net capacity to Cenovus.

© 2020 Cenovus Energy Inc. September 30, 2020

© 2020 Cenovus Energy Inc. September 30, 2020 6

Area map

Subsection 4.1 1


Recovery processChristina Lake Thermal Project

Uses the dual-horizontal well SAGD (steam-assisted gravity drainage) process to recover oil from the McMurray formation

• Two horizontal wells one above the other approximately 5 m apart

• Steam is injected into the upper well where it heats the oil and allows it to drain into the lower well

• Oil and water emulsion pumped to the surface and treated

Subsection 4.1 1

Subsection 4.2 2-7Subsurface


Performance: full historical

Subsection 4.2 2 (a) & (b)

Phase A

Phase B

Phase C

Phase D

Phase E

Phase C/D/E Optimization

Phase FPhase G

Curtailment


Scheme Map: Christina Lake

Subsection 4.2 3 (a)


SAGD Pay Isopach Map (Main Zone)

C.I. = 4m

Subsection 4.2 3 (b)


SAGD Pay Isopach Map (Upper Zone)

Subsection 4.2 3 (b)

C.I. = 4m


SAGD Top Gas Isopach

(2m contour interval)

3 main gas pockets:

• ‘Sec 15’• centered over Section 15

• ‘11-14’• centered over Section 11

• ‘Southern’• centered over Section 2

Subsection 4.2 3 (c)


McMurray Water Isopach Map


C.I. = 4m

© 2020 Cenovus Energy Inc. September 30, 2020 15Subsection 4.2 3 (d) 15

• CVE FCCL 7-17-76-6w4• CVE FCCL C2 HARDY 2-10-76-5• CVE FCCL C11 HARDY 11-10-77-6• CVE FCCL C10 LEISMER 10-7-76-6W4*

DFIT Wells

• CVE recognizes that tensile and shear failure are two possible ways for integrity to be compromised

• DFIT data gives insight about failure mechanisms and stress magnitudes.

* This well was drilled in 2018. T21 is the caprock. Tested @328.25m, Closure Pressure 17.70 kPa/m


3D Seismic within Project Area

Subsection 4.2 3 (e)

No 3D acquired in 20192006-2019 3D in Blue


4D Seismic within Project Area

Subsection 4.2 3 (e)

2020 4D (Pink Outline)2019 4D (Green Outline)

2020 4D Pad Coverage:L09, L05, L03, H01, H03, J01, J03 B07b,


Cross-section (structural): north

WBSK (T21)

T11

MCMR

SAGD Base

Water Top

Paleo

SAGD Pay

A A’

A A’

Producer Level (est.)

Injector Level (est.)

Subsection 4.2 4 (a) to (c)


Cross-section (structural): mid

WBSK (T21)

T11

MCMR

SAGD Base

Water Top

Paleo

SAGD Pay

B B’

B B’



Subsection 4.2 4 (a) to (c)

20

Cross-section (structural): south

WBSK (T21)

T11

MCMR

SAGD BaseWater Top

Paleo

SAGD Pay

C C’

CC’



Subsection 4.2 4 (a) to (c) © 2020 Cenovus Energy Inc. September 30, 2020


OBIP Volumes

Subsection 4.2 5 (a) & (b)

• Project Area OBIP• 755 MMm3

• Development Area OBIP• 746 MMm3

• Combined Active Well Patterns OBIP• 166 MMm3

• Cumulative % Recovery• 49%


Reservoir propertiesReservoir Characteristics Christina Lake Project

Area Kirby East Project Area Approved Development Area

Reservoir Depth (m subsea) 170 - 245 170 - 245 170 - 245

Average SAGD Pay Thickness (m) Up to 45+ Up to 25+ Up to 35+

Porosity (%) 31% 29% 30%

Horizontal Permeability (D) Up to 10 Up to 8 Up to 10

Vertical Permeability (D) Up to 7 Up to 6 Up to 7

Oil Saturation (%) ~80% ~75% ~80%

Water Saturation (%) ~20% ~25% ~20%

Original Reservoir Pressure (kPa) ~2500 ~2500 ~2500

Original Reservoir Temperature (oC) 12°C 12°C 12°C



POIP and RF per pad

*As of December 31st, 2019

Subsection 4.2 6 (a) to (g)

Pad Area (m2) Height (m) Porosity (%) So (%) POIP (Mm3)Cum Oil (Mm3) to Dec 31,

2019Recovery % POIP

Estimated Ultimate Recovery (m3)

Ultimate Recovery as % of POIP

A01 PAD 514,091 26 33% 77% 3,275 2,386 72.8% 2,470 75.4%A02 PAD 174,295 31 32% 84% 1,385 542 39.1% 799 57.7%B01 PAD 644,033 38 32% 80% 6,166 4,228 68.6% 4,485 72.7%B02 PAD 329,864 43 32% 83% 3,752 2,939 78.3% 3,226 86.0%B02C PAD 320,629 29 33% 83% 2,530 1,806 71.4% 1,896 74.9%B03 PAD 677,534 41 32% 83% 7,043 5,548 78.8% 5,899 83.8%B04 PAD 652,375 41 31% 82% 6,780 5,782 85.3% 5,932 87.5%B05 PAD 731,534 47 31% 79% 8,443 5,991 71.0% 6,672 79.0%B06 PAD 605,198 37 31% 77% 5,348 4,398 82.2% 4,620 86.4%B07 PAD 642,341 46 30% 81% 7,093 5,430 76.6% 5,748 81.0%B07B PAD 884,240 29 32% 78% 6,330 2,691 42.5% 3,965 62.6%B08 PAD 568,267 34 33% 84% 5,497 3,627 66.0% 3,983 72.5%B09 PAD 558,380 44 31% 86% 6,408 4,136 64.5% 4,797 74.9%B10 PAD 595,522 37 31% 80% 5,489 1,468 26.7% 2,655 48.4%B11 PAD 640,668 36 31% 82% 5,847 4,345 74.3% 4,432 75.8%B13 PAD 836,206 26 31% 81% 5,521 2,216 40.1% 3,586 64.9%F01 PAD 700,230 31 30% 79% 5,003 2,938 58.7% 3,824 76.4%H01 PAD 773,342 28 33% 82% 5,996 2,472 41.2% 4,291 71.6%H03 PAD 658,249 29 34% 83% 5,243 2,408 45.9% 3,638 69.4%J01 PAD 600,387 22 32% 78% 3,414 1,160 34.0% 2,277 66.7%J03 PAD 561,300 41 33% 82% 6,157 3,647 59.2% 4,698 76.3%J07 PAD 848,871 24 32% 81% 5,295 66 1.3% 4,128 78.0%J09 PAD 758,451 27 32% 83% 5,305 330 6.2% 3,932 74.1%J15 PAD 991,475 25 31% 79% 5,992 16 0.3% 4,002 66.8%L02 PAD 980,071 26 33% 83% 6,903 66 1.0% 3,994 57.9%L03 PAD 716,007 31 34% 85% 6,377 2,092 32.8% 4,432 69.5%L05 PAD 469,077 33 29% 76% 3,410 1,089 31.9% 2,074 60.8%L09 PAD 715,617 26 30% 86% 4,763 916 19.2% 3,408 71.5%Total CL 18,148,253 150,764 74,734 49.6% 109,864 72.9%


Map of co-injection wells

Subsection 4.2 7 (a)

6-15 well

Non-condensable gas• NCG injected in 6-15 well, and wells on A01,

A02, B01, B02, B02C, B03, B04, B05, B06, B07, B07b, B08, B09, B11 and B13 pads

Solvent• No solvent injection at CL, currently.

25

Injection Strategy and ImpactsNCG Injection commencement is based on:

• Pads with high RF• Pads with high SOR/declining oil

ratesSteam cuts are typically made in 25% increments.

Impact of co-injection:• High gas production. Trials

underway to determine if produced gas may be decreased.

• Production declines and RFs cannot be reasonably compared as they may be impacted by trials/facility limitations, and re-development wells.

Subsection 4.2 7 (b) & (c) © 2020 Cenovus Energy Inc. September 30, 2020

Subsection 4.3 8Surface

Overall plot plan

Subsection 4.3 8 (a) 27© 2020 Cenovus Energy Inc.September 30, 2020

49,284 m3/d

28

Source Water Infrastructure Fresh water source wells – Empress Aquifer :•Two wells at 09-17-076-06W4M (TDS ~440-560 mg/L)•One well at 06-16-076-06W4M (TDS ~380-650 mg/L)

Brackish water source wells – Clearwater B Aquifer:•CW1-A 1F1/13-35-075-06W4/00 TDS ~ 7,400 mg/L•CW1-B 1F1/13-34-075-06W4/00 TDS ~ 5,070 mg/L•CW1-C 1F1/15-27-075-06W4/00 TDS ~ 7,780 mg/L•CW2-A 1F1/16-03-076-06W4/00 TDS ~ 4,600 mg/L•CW2-B 1F1/02-03-076-06W4/00 TDS ~ 5,580 mg/L•CW3-A 100/04-35-075-06W4/00 TDS ~ 9,730 mg/L•CW3-B 100/13-27-075-06W4/00 TDS ~ 8,900 mg/L•CW-3C 100/02-27-075-06W4/00 TDS ~ 11,700 mg/L•CW4-A 1F1/01-35-075-06W4 TDS ~ 13,200 mg/L•CW4-B 1F1/06-01-076-06W4 TDS ~ 8,800 mg/L•MW1-DC 1F1/07-07-076-05W4 TDS ~ 4,300 mg/L•3-16 1F5/03-16-076-06W4/00 TDS ~ 8,400 mg/L

McMurray water source wells (Online Q4 2016):•MW1-A 1F1/07-18-076-05W4 TDS ~ 16,880 mg/L•MW1-B 1F1/03-07-076-05W4 (not in use) TDS ~ 16,520 mg/L•MW1-C 1F1/09-07-076-05W4 TDS ~ 16,420 mg/L•MW4-A 1F3/11-09-076-06W4 TDS ~ 10,850 mg/L•MW4-B 1F1/04-08-076-06W4 TDS ~ 11,300 mg/L•MW4-C 1F1/16-08-076-06W4 TDS ~ 10,990 mg/L•CW4-C 1F1/01-36-075-06W4 TDS ~ 18,600 mg/L•MWH 1F1/01-01-077-04W4 (not in use) •MWH 1F1/02-01-077-04W4 (not in use)•MWH 1F2/01-01-077-04W4 (not in use)•MWH 1F1/15-36-076-04W4 (not in use)•MWH 1F1/16-36-076-04W4 (not in use)•MWH 1F2/16-36-076-04W4 (not in use)

28Subsection 4.3 8 (a) © 2020 Cenovus Energy Inc.September 30, 2020

MWH TDS ~ 13700-16800 mg/L

Quaternary Fresh Source

Wells

McMurrayClearwater

3-16 Disposal Reversal Well

MWH

McMurray water disposal wellsExisting Water Disposal WellsRD1 Pad102/15-35-76-4W4103/15-35-76-4W4104/15-35-76-4W4105/15-35-76-4W4106/15-35-76-4W4107/15-35-76-4W4

ExistingDisposal Wells RD2 Pad100/13-34-76-3W4102/13-34-76-3W4103/13-34-76-3W4104/13-34-76-3W4105/13-34-76-3W4100/04-03-77-3W4100/12-34-76-3W4

29

100/04-16-76-6W4Former Water Disposal100/03-16-76-6W4Converted to water prod well1F5/03-16-76-6W4

Subsection 4.3 8 (a) © 2020 Cenovus Energy Inc.September 30, 2020

Facility summary

• Phase G Start-up – 2019:• Steam Plant – February• Water Plant – March • Process/De-oiling – end of April

• Production curtailment (January – August) limited inlet production rates

• Fresh water TDL’s utilized for steam production to maintain well health/operation

• Phase CDE Turnaround – April/May

• Approval of New Directive 081 Disposal Regulation• CL will meet new allowable disposable ratio (<100%)

Subsection 4.3 8 (b) 30© 2020 Cenovus Energy Inc.September 30, 2020

Plant performance

Steam• System capacity increased to 82,560 m3/d of steam (23% increase)*• 2019 average flowrate of 62,970 m3/d | 76% of Capacity• System capacity increase due to start-up of Phase G OTSGs (Q1, 2019)• Phase A to H approved steam capacity is 92,618 m3/d

Oil• System capacity increased to 43,880 m3/d of oil (276,000 bbl/d) (20%

increase)*• 2019 average flowrate of 30,957 m3/d (194,807 bbl/d) | 71% of Capacity• System capacity increase due to start-up of Phase G Process Treating (Q2

2019• Phase A to H approved annual average bitumen capacity is 49,284 m3/d

(310,000 bbl/d)

Subsection 4.3 8 (c) 31© 2020 Cenovus Energy Inc.September 30, 2020

*Capacity values are based on proven best 7 day averages

Subsection 4.4 9-12Historical and Upcoming Activity

Pad Abandonments

33© 2020 Cenovus Energy Inc.September 30, 2020

• No pad abandonments are currently planned at Christina Lake in the next 5 years.

Subsection 4.4 9 (a)(i) & (b)(ii,iii)

Well patterns with active blow-down or ramp-down

Subsection 4.4 9 (a)(ii) 34© 2020 Cenovus Energy Inc.September 30, 2020

Pads on co-injection/ RD

Pads on BD

2019 Regulatory application/approval summaryAct Application

No.Application Description Approval

DateOSCA 1920148 Well Pad B07B and B13 Natural Gas Co-

injection2019-04-22

OSCA 1921704 Well Pad E01 Trajectory Update 2019-06-13

OSCA 1922184 Butane Blending Project Application 2019-07-10

OSCA 1922415 TriCanter Trial - 6 month extension 2019-07-15

OSCA 1925206 ID 2001-03 Sulphur Variance Waiver for 2020

2019-11-07

EPEA 028-48522 Short-term variance to SO2 emission limit (3 months)

2019-02-01

EPEA 029-48522 Short-term variance to SO2 emission limit (to year-end 2020)

2019-10-18

Subsection 4.4 10 (a) 35© 2020 Cenovus Energy Inc.September 30, 2020

Facility modifications

• Phase G plant expansion:• Start-up - 2019:

o Steam Plant – Februaryo Water Plant – March o Process/De-oiling – end of April

Subsection 4.4 10 (b) 36© 2020 Cenovus Energy Inc.September 30, 2020

Emulsion treatment

Process Treating Area:• Reduced inlet emulsion rates due to production apportionment resulted in:

• minimal OIW excursions• little process cooling limitations• execution of opportunistic maintenance

• Phase G Start-Up (April 2019) added capacity/flexibility for:• treating• maintenance outages/turn-arounds

37© 2020 Cenovus Energy Inc.September 30, 2020Subsection 4.4 10 (c)

Produced Water treatmentDe-oiling Area:• Reduced produced water rates during the production apportionment

resulted in minimal oil and grease excursions

• Phase G Start-Up (April 2019) added capacity/flexibility for:• Treating• Maintenance outages/Turn-around

• Post curtailment, issues in de-oiling were:• On-going monitoring of oil-in-water excursions


Water treatment• Reduced produced water rates due to production apportionment resulted in lack of

sufficient boiler feed water to generate the steam required to maintain well health/operation:

• Fresh water TDL (temporary diversion license) provided the ability to utilize additional fresh water to increase steam production by ~2,120 Sm3/d

• Phase G water plant start-Up (March 2019) added capacity/flexibility for:

• Necessary maintenance outages / turn-around activities

• Distribution of water treatment during off-spec / excursion events to limit impacts to downstream equipment (ion exchange trains & OTSGs / HRSGs)

• Equipment reliability issues, process upsets and unplanned outages occasionally continued to limit total water plant capacity through 2019


Steam generation• Reduced produced water rates due to production apportionment resulted in lack of

sufficient boiler feed water to generate the steam required to maintain well health/operation

• Fresh water TDL (temporary diversion license) provided the ability to bring in additional fresh water to increase steam by ~2,120 Sm3/d (per previous slide)

• Phase G steam plant start-Up (April 2019) added capacity/flexibility for:

• Generating additional steam to manage well health during apportionment

• Maintenance outages/turn-around


Pilots/technical innovations

Butane Blending Project – displace diluent volumes to reduce Opex• Phase 1 of trial started September 2019:

• Positive results however economics are not as prolific as originally projected due to pricing driver degradation

• Phases 2/3 of trial to commence Nov/Dec 2020• Instrumentation improvements and increased injection capacity changes have been

completed to enable next set of trials

Tricanter Project – recycle slop water/slop oil• Operated Nov 2018 – Oct 2019• Encountered treating issues due to the quality of slop – addition of sales oil helped

process fluids• Proven economical on short-term basis when the facility produced higher than

normal off-spec process fluids• Review will continue in 2020-2021 to determine if a permanent Tricanter system will

be pursued

Subsection 4.4 10 (d) 41© 2020 Cenovus Energy Inc.September 30, 2020

2019 Non-compliance summary - AER

Subsection 4.4 11 (a) to (d) 42© 2020 Cenovus Energy Inc.September 30, 2020

Date Non compliance/Self Disclosure Follow-up

2019-01-15 Pipeline Inspection @ 4-16-76-6W4 P35664. Discontinued pipeline not left in a safe condition, notification to the AER of a pipeline leak.

Complete, response letter and action plan submitted June 12, 2019.

2019-03-18 Pipeline Inspection @ 10-35-75-6W4 P51139. Discontinued pipeline not left in a safe condition.

Complete, response letter and action plan submitted June 11, 2019.

2019-11-20Well Site Inspection @ 02-14-076-06W4. 5 suspended wells located immediately behind operational wells do not have signs identifying the wells.

Complete, response letter submitted January 29, 2020.

2019 Non-compliance Summary – EPEA

43

Date Non compliance Follow-up

2019-02-11 EDGE Ref# 349409. CEMS unit B-2100 failed to meet 90% availability on flow meter due to a faulty connector. Replaced faulty connector.

2019-03-30 EDGE Ref# 351744. CEMS unit B-3100 failed to meet 90% availability on the temperature probe due to a faulty loop isolator. Faulty loop isolator was replaced.

2019-07-24 EDGE Ref# 356907. Failed RATA on B-3460 due to drift on NO2channel.

Unit was re-calibrated and second RATA passed.

2019-11-01 EDGE Ref# 360806. CEMS unit B-3500 failed to meet 90% availability on flow meter as the flowsic malfunctioned.

Replaced flowsic. Data backfill performed using approved AER method.

2019-11-16 EDGE Ref# 0361130. Failure of B05 Pad produced water tank gate valve seal.

Spilled volume cleaned up and tank replaced.

2019-12-07 EDGE Ref# 361853. SO2 limit exceedance. H2S analyzer drifted to 0 ppm resulting in additional by-pass of the scavenger system.

Manual H2S sampling in place to verify analyzer readings.

2019-12-31 EDGE Ref# 362198. Failed to perform second CGA on B-3460 due to expired CGA gas and extended downtime of B-3460.

Additional procedures put in place to check audit gas expiry dates.

Subsection 4.4 11 (a) to (d) © 2020 Cenovus Energy Inc.September 30, 2020

Future plansPotential Future Applications• Diluent Solvent Aided Process

• Brackish Water Debottleneck

• Phase H Amendment

• Produced Gas Cooler Debottleneck

Future Plant Activity• Due to the COVID-19 pandemic, there were no plans/activities that affected

plant operation in Q1-Q3 2020

• Phases A-E plant turnaround scheduled for Sept/Oct 2020

44© 2020 Cenovus Energy Inc.September 30, 2020Subsection 4.4 12 (a) & (c)

Planned development

45© 2020 Cenovus Energy Inc.September 30, 2020Subsection 4.4 12 (b)

Drilled PadsLocked Down PadsFuture Pads

Questionsplease contact us

Cenovus Energy Inc.225 - 6 Ave SWPO Box 766Calgary, Alberta T2P 0M5 Telephone: 403.766.2000Toll free in Canada: 1.877.766.2066 Fax: 403.766.7600cenovus.com

http://www.cenovus.com/

cenovus fccl ltd. christina lake in-situ progress report

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